Mike Michalowicz and real estate agents are a match made in heaven. With so many balls in the air, it becomes difficult for real estate agents to also track and best manage their finances. Traditional accounting says that Revenue – Expenses = Profit. What Mike Michalowicz teaches in his book, Profit First, turns that equation on its head. He teaches Revenue – Profit = Expenses. In this episode, Mike walks through some of the psychological magic that happens when we do this, the processes that support it and then the end result, which is true and lasting success.
Some of the topics that we discussed were:
- 83% of small businesses are not profitable
- Business owners get in business for themselves for time freedom and financial freedom while most never achieve either.
- What traditional accounting teaches and how that is not the best way to ensure your own financial success
- The book ‘Profit First’ teaches you to change the accounting equation of Revenue – Expenses = Profit to instead, Revenue – Profit = Expenses
- What must happen at your bank to accommodate this new flow of income
- What happens to the way that you look at your expenses when you do this
- The correlation between those in a Poker game that bluff and those that don’t track their expenses
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